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What is the meaning of demonetisation …

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What is the meaning of demonetisation and impact of demonetisation

    • Posted by Nikita Hunka 6 years, 11 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Yogita Ingle 6 years, 11 months ago

    1. Demonetization is not a big disaster like global banking sector crisis of 2007; but at the same time, it will act as a liquidity shock that disturbs economic activities.
    2.   Consumption will be hit: When liquidity shortage strikes, it is consumption that is going to be adversely affected first.
    3. Loss of Growth momentum– India risks its position of being the fastest growing largest economy: reduced consumption, income,      investment etc. may reduce India’s GDP growth as the liquidity impact itself may last three -four months.
    4.  

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